Sri Lanka’s Sanasa Life to sell stake in subsidiary Sanasa General Insurance

ECONOMYNEXT — Sri Lanka’s Sanasa Life Insurance Company said it was planning the total divestment of its shareholding in subsidiary Sanasa General Insurance Company Limited.

The parent company plans to completely offload its equity stake in the general insurance arm, comprising up to 30,614,059 ordinary shares representing 53.5 percent of the issued share capital, according to a market filing.

Sanasa General Insurance, which provides tailored individual and corporate general insurance packages, has operated as a core segment of the broader Sanasa financial network.

The divestment is pending statutory and regulatory clearances and shareholder approval.

The Insurance Regulatory Commission of Sri Lanka suspended Sanasa Life Insurance’s registration to carry on long-term insurance businesses in December 2025.

The reasons given for the suspension are:
– Conducting business in a manner which could be detrimental to the interest of the policy holders/insurance industry and national interest.
– Not being able to meet the solvency margin specified by the regulator.
– Has failed to follow the provisions of the Regulation of Insurance Industry Act and the order s/rules and conditions made by the regulator under the said Act.
– Providing data which are false/inaccurate and misleading and has failed/concealed the material facts.

In July, the central bank fined Sanasa Life Insurance 2 million rupees for multiple lapses, including issues with politically exposed persons (PEPs) and incomplete sanctions list maintenance. (Colombo/Oct5/2026)